Analysis of Tech Giants' Stock Splits
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 7 hours ago
0mins
Should l Buy AMZN?
Source: NASDAQ.COM
- Reason for Stock Splits: Amazon, Alphabet, and Tesla executed stock splits in mid-2022 after experiencing triple or quadruple-digit gains over the previous three years, aiming to lower share prices to attract more investors and potentially initiate a new growth phase.
- Price Performance Review: Prior to their splits, Nvidia's stock surged over 200% in the three years leading up to the split, while Netflix's stock skyrocketed more than 300% in the two and a half years before its split, indicating that strong pre-split performance set the stage for future growth.
- Post-Split Performance: Although Netflix's stock split occurred recently, making direct comparisons challenging, historical data suggests that companies that have completed stock splits often see their share prices rise again over the long term, providing returns to investors.
- Investor Strategy Insights: Stock splits do not affect a company's fundamentals, so investors should focus on earnings growth and prospects; if a quality company continues to deliver growth post-split, it may yield substantial returns once again.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
44 Analyst Rating
41 Buy
3 Hold
0 Sell
Strong Buy
Current: 271.170
Low
175.00
Averages
280.01
High
325.00
Current: 271.170
Low
175.00
Averages
280.01
High
325.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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